In the present research work, effect of airfoil vortex generator on performance and stability of transonic compressor stage is investigated through CFD simulations. In turbomachines vortex generators are used to energize boundary and generated vortex is made to interact with tip leakage flow and secondary flow vortices formed in rotor and stator blade passage. In the present numerical investigation symmetrical airfoil vortex generator is placed on rotor casing surface close to leading edge, anticipating that vortex generated will be able to disturb tip leakage flow and its interaction with rotor passage core flow. Six different vortex generator configuration are investigated by varying distance between vortex generator trailing edge and rotor leading edge. Particular vortex generator configuration shows maximum improvement of stall margin and operating range by 5.5% and 76.75% respectively. Presence of vortex generator alters flow blockage by modifying flow field in rotor tip region and hence contributes to enhancement of stall margin. As a negative effect, interaction of vortex generator vortices and casing causes surface friction and high entropy generation. As a result compressor stage pressure ratio and efficiency decreases.